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Uptick in digital signage display sales abets growth in other sectors

March 30, 2011

With escalating demand for display and digital signage screens, the liquid crystal display (LCD) and organic light emitting diode (OLED) manufacturing equipment market has witnessed an uptick in growth, according to analysis firm Frost & Sullivan.

The market will continue its upward growth trajectory through 2011, with burgeoning sales of LCD TVs, smartphones and advertising screens triggering high uptake of LCD manufacturing equipment, the company said in an announcement today.

During 2010, TFT-CD fab expansions boosted LCD equipment adoption, but the intensifying focus on energy efficiency and the gravitation toward environment-friendly products will accelerate demand for OLED displays over the next 3-5 years, according to today's announcement.

"The tangible advantages of OLED technology, such as sharper images and better contrast ratios, crisp colors and faster refresh rates compared to any existing display technology will be a key driver," Frost & Sullivan Research Analyst Lavanya Rammohan said in the announcement. "OLED also offers consumers better energy management, as the whole system functions at optimal power and is of organic substrate."

As the benefits of OLED displays become more prominent, the demand for OLED manufacturing equipment will witness a hike in the next 3-7 years, the company said. Technology innovations, better functionality and falling price are expected to keep up the tempo of demand for OLED displays in mobile phones. The market also expects to benefit from increasing demand for OLED displays used for signage.

Deposition and patterning of large substrates remain major impediments for LCD and OLED manufacturing equipment providers. The use of large substrates complicates the deposition process and incurs high capital costs in terms of material deposition and relevant technical issues with throughput and uniform deposition.

Greater emphasis on design and prototyping will continue to revolutionize the display manufacturing equipment markets. As the consumer industry continues to witness increasing panel sizes, the deposition with high accuracy and throughput (without affecting integrity of material in the OLED market) will be a key challenge.

"LCD and OLED equipment manufacturers are constantly improving design and functionality of equipment to help overcome deposition challenges and battle bottlenecks," Rammohan said. "They are venturing into open collaboration with customers and creating product roadmaps that enable scalability for future generations of display manufacturing."

Innovative deposition techniques, testing and other processes are expected to spike customer interest and elevate purchasing levels. Going forward, there will be increased collaboration between material providers, display manufacturers, equipment providers and technology enablers to optimize material performance and lifetime. Constant innovation of manufacturing processes will be imperative to balance the relentless price pressures that display manufacturers confront.